Bank of India Q1FY26 net profit jumps 32% to ₹2,252 cr on strong non-interest income; NIM narrows to 2.8%

The state-owned lender announced the results post-market hours.

The sharp rise in profit was primarily driven by a 66.4% jump in non-interest income, which came in at ₹2,166 crore, according to a Live Mint report.

However, net interest income (NII) slipped 3% to ₹6,068 crore from ₹6,275 crore a year ago, despite a healthy 11.24% growth in domestic advances to ₹5,65,297 crore.

The fall in NII points to pressure on margins, with the net interest margin (NIM) narrowing to 2.8%.

Operating profit during the June quarter stood at ₹4,009 crore, up 9% from ₹3,677 crore in Q1 FY25.

Total provisions dropped to ₹14,690 crore from ₹22,014 crore in the year-ago quarter.

Asset quality saw a notable improvement.

The gross non-performing asset (NPA) ratio declined to 2.92%, from 4.62% a year earlier and 3.27% in the March 2025 quarter.

The net NPA ratio also improved to 0.75%, compared to 0.99% in June 2024 and 0.82% in March 2025.

Provision coverage ratio (PCR) increased to 92.94%, up from 92.11% in the year-ago quarter and 92.39% at the end of March.

The slippage ratio remained stable at 0.33%, versus 0.35% in June last year and 0.32% in the previous quarter.

Credit cost also declined to 0.68% from 0.85% a year ago and 0.84% in the March quarter.